In re Gujarat Ambuja Exports ltd. (GST AAR Gujarat)
The product ‘Maize Bran’ manufactured and supplied by M/s. Gujarat Ambuja Exports ltd. is covered under Entry Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 of the CGST Act, 2017 on which rate of GST chargeable is 5% (2.5% SGST + 2.5% CGST).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant vide their application for Advance Ruling has submitted that they are engaged in the manufacture and taxable supply of Maize starch and its derivatives in their plant at Village Dalpur, Himatnagar, Gujarat. In the course of manufacture, Maize Bran is produced by corn wet milling which is a byproduct and is sold as cattle feed; that Bran is the hard-outer layers of cereal grain and along with germ, it is an integral part of whole grains and is often produced as a by-product of milling during the production of refined grains; that Maize Bran is one such inevitable by-product of various maize processing industries; that the production of Maize Bran amounts to 13% of the total production of the applicant and is found in three different forms: (a) Maize Bran dry (b) Maize Bran wet (c) Maize Bran(CSL mixed); that Maize Bran consists of the bran coating removed in the early stages of wet milling and is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemiceluloses, 15-18% cell cellulose, 3-6% oil, and 1-2% other components; that maize bran stream coming from dewatering presses contains about 30 to 50% solids; that maize bran is usually a mixture of the bran fraction and other by-products and is, therefore, a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed; that the applicants supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix maize bran with other maize processing by-products; that prior to the GST regime, they were clearing ‘Maize Bran’ for home consumption by classifying the same under Heading 23021010 of Central Excise Tariff Act, 1985 and have submitted ER1 returns for the months of April, 2017 to June, 2017 indicating rate of duty of Maize Bran as NIL.
2. The applicant further stated that the relevant entry of their product is found at Sr.No. 103A of Schedule-I of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017 which reads as under:
